Maturity

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Related to maturities: Current Maturities

Maturity

For a bond, the date on which the principal is required to be repaid. In an interest rate swap, the date that the swap stops accruing interest.

Maturity

The time when the issuer of a bond or other debt security must repay the principal or when a borrower must repay a loan in full. For example, if a company issues $1 million in bonds with a maturity of 10 years, the company must repay $1 million to bondholders 10 years after the issue. The amount owed at maturity is usually the same as the debt or loan's face value. After maturity, the loan or debt ceases to exist, assuming all parties have fulfilled their obligations. See also: Expiration.

maturity

The date on which payment of a financial obligation is due. In the case of a bond, the maturity date is the one on which the issuer must retire the bond by paying the face value of the bond to its owners. Shares of stock do not have specific maturity dates.
Case Study In late 1995, BellSouth became only the fifth company in 40 years to issue bonds with 100-year maturities. The AAA-rated bonds carried a 7% coupon that was 70 basis points higher than 30-year Treasury bonds yielded when the BellSouth bonds were priced. Because it is impossible to know what the next 100 years will bring, bonds with such long maturities subject investors to substantial risk. Renewed inflation, for example, could undermine the purchasing power of the interest payments a bondholder received. Likewise, competition in the communications industry might shake the financial stability of a company long protected by regulation. In addition, changes in market rates of interest have a significant impact on the price of bonds with long maturities. On the plus side though, this BellSouth bond presented investors with a chance to lock in for a long period what at the time appeared to be an attractive yield. If inflation and interest rates remain low for decades, the bonds could turn out to be a profitable investment.

maturity

The date on which the remaining balance of a promissory note is due.

Maturity

The period until the last payment is due.

The maturity is usually but not always the same as the period used to calculate the mortgage payment. See Term.

References in periodicals archive ?
Treasury bills (short-term): maturities up to two years
The maturities of government bonds are plotted on the x axis, the yields, or interest each bond pays, on the y axis.
DEKALB now offers cyst resistant varieties in maturities ranging from Group I through Group IV.
Because of the expected decline in the rate of loan prepayments, the effective maturities of our mortgage assets now exceed those of our liabilities.
However, even with the recent positive credit events by Level 3, including the acquisition of WilTel and the exchange of approximately $692 million of 2008 maturities for a similar amount of 2010 maturities, the company still faces negative free cash flow through 2008 and a relatively large maturity schedule beginning in 2008.
The suite of RBC Target Maturity Corporate Bond ETFs includes nine fixed income corporate bond ETFs with maturities spanning from 2013 to 2021.
CHICAGO, July 28 /PRNewswire/ -- The shareholders of the Nuveen Select Maturities Municipal Fund (NYSE: NIM) and the Nuveen Select Maturities Municipal Fund 2 (NIR) approved today a combination of the two exchange-traded funds into one fund.
But if you're thinking long-term or simply can't stand to waft for rates to go up, hedge your bets by investing in bonds with scattered maturities, say from two to 10 years.
Of course, enhancing returns is not always as simple as extending maturities, but this example points out how important it is that you periodically review your corporate investment policy in light of your funding needs and market conditions.
All series of Newcastle Certificates are issued at a discount, with expected maturities ranging from one to 94 days with final maturities set 397 days from the initial issuance date.